The South African rand gave back some of Thursday’s gains on Friday, trading at 17.94 per dollar at 1340 GMT, about 0.7% weaker than the prior close.
Dollar strength and lingering concerns over U.S. fiscal debt and potential tariff hikes weighed on the currency, despite South Africa’s own supportive monetary signals.
“Domestic fundamentals remain constructive, but U.S. policy uncertainty is likely to keep the rand consolidating between 17.70 and 18.00 in the near term,” said Andre Cilliers, currency strategist at TreasuryONE.
On Thursday, the rand had rallied after the South African Reserve Bank (SARB) highlighted detailed modelling for a 3% inflation target—below its current 3–6% range midpoint of 4.5%—and resumed its cycle of rate cuts.
“Investors have focused on the promise of lower inflation, further rate reductions, and potential bond inflows, all of which underpin the rand over the longer run,” ETM Analytics noted.
Elsewhere, Johannesburg’s Top-40 index slipped 0.7%, while the yield on the benchmark 2035 government bond eased 1.5 basis points to 10.155%.